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All main topics / Business Economics / History of Economics / ECON 2200 Exam 1

What are the 2 reasons rGDP has tended to converge in the US? Explain them.

Labor Migration - equilibrium will ensue because of the "osmosis" of labor migrants from low to high wage regions. This is called Wage Convergence

Capital Migration - as capital leaves, the demand for labor decreases, as capital increases the demand for labor increases

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Flashcard info:

Author: savhighsmith

Main topic: Business Economics

Topic: History of Economics

School / Univ.: UGA

City: Athens

Published: 15.09.2010

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